Driving territorial economic development: The role of social capital in the rural Albania

Territorial economic development in the rural areas of Albania, particularly in the Berat region, is a key aspect for the transformation of economy and improvement of the quality of life. This study examines the interaction between entrepreneurship and social capital towards approaching to sustainable development. Berat is a region traditionally oriented to agriculture. It has entered a period of economic diversification, characterized by rapid development in the sectors of tourism, handicrafts, and agro-processing. Social capital, including trust and social networking, has proven as crucial in fostering cooperation between entrepreneurs and local institutions, hence generating new chances for economic growth. However, as the main obstacles remain the lack of adequate infrastructure (both physical and social), and the need for professional education and training. This study also summarizes the impact of the EU investments and national support projects on the growth of enterprises and diversification of employment. Performed study uses both qualitative and quantitative methods. It comprises the interviews with one hundred farmers who are simultaneously running a business and agricultural farm, analyzing official data from the Albanian Institute of Statistics, the Ministry of Agriculture and Rural Development of Albania, Berat region and the Berat municipality. In order to achieve the preset goals, it is necessary to investigate the relations that exist between entrepreneurship, available social capital, and sustainable rural development in the Berat region. Derived results suggest that, despite challenges, the region has already achieved steady progress, transforming into a model optimal for development of other rural regions in Albania.